On the Indian Stock Markets. December 17

The only take away from last session’s trade is that the critical support of 6141 held, otherwise all the technical indicators indicate weakness.

That being said, the benchmark index must trade above 6161 mark in the initial hour of trade conclusively for the market to go up, in which case the resistances will be at 6177, 6199 and 6214. Otherwise, i.e. below 6161, the market will remain weak and bearish with supports at 6139, 6124 and 6102.

A breach of the key support of 6141 conclusively with volumes and on closing basis will imply that the Nifty will be headed towards the 5946 mark.

Intra-day traders may trade accordingly depending on which side of the 6161 mark the index trades. They may go short if the index trades conclusively below 6161 in the initial trades with stop loss at 6175. In case if Nifty trades above 6161 conclusively then they may trade on the long side with stop loss at 6161.

Short-term traders may continue to trade on the short side at higher levels with strict stop loss at 6257. They may consider going long in Tata Motors for a day or two with strict stop loss at 360.

Mid-term investors may utilize the current weakness to buy Tata Steel by placing bid @ 398.05 and 381.55, buy HCL Tech @ 1158.65 and buy HDFC Bank @ 677.45 and 666.55 in small quantities.

Disclaimer: The writers of this column do not personally hold any stock or position in the F&O market and do not intend to benefit in any way by publishing this column. The final discretion is that of the reader and we disown any responsibility for any loss incurred by the reader.